UWM stock falls about 40% after loss, dividend suspension and capital plan
UWMC shares dropped about 40% intraday after UWM reported a Q2 loss, halted its common dividend and outlined a $2.05 billion capital package.
By Maya Okafor · Markets Writer
· 3 min read
UWM stock falls 40% was the market’s immediate response Thursday after the mortgage lender reported a second-quarter loss, suspended its common dividend and announced a $2.05 billion equity-capital partnership. Shares of UWM Holdings, the parent of United Wholesale Mortgage, traded near $1.12 at 1:48 p.m. EDT, down 39.13% for the session, according to CNBC.
For shareholders, the announcements combine a balance-sheet repair plan with the loss of a regular cash payment. UWM said the capital is intended to repay existing debt, repay mortgage-servicing-rights financing facilities and support general corporate purposes.
Why did UWM stock fall about 40%?
The company disclosed several consequential developments at once: a $451.9 million net loss for the June quarter, a suspension of the common dividend and a financing package that includes preferred equity, warrants and a planned shareholder rights offering. The available evidence does not establish which development, or combination of developments, drove the intraday selloff.
UWM reported $888 million in second-quarter revenue and $39.7 billion in mortgage originations, according to its quarterly results release. Originations declined from $44.9 billion in the first quarter but were essentially unchanged from $39.7 billion a year earlier.
The quarterly loss compared with net income of $170.4 million in the first quarter and $314.5 million in the second quarter of 2025. A UWM spokesperson told HousingWire that the loss was primarily related to a hedge-related mark-to-market event connected to the anticipated Two Harbors mortgage-servicing-rights transaction, and characterized it as specific to the quarter.
UWM also reported adjusted EBITDA, a company-defined measure that excludes certain items from earnings, of $185.9 million for the quarter.
How is UWM raising $2.05 billion?
The package calls for $1.65 billion of preferred equity and warrants from Oaktree Capital Management and SFS Group Capital, an investment vehicle owned by the Ishbia family, at closing. The remaining $400 million is planned through a Class A shareholder rights offering if needed, according to UWM and HousingWire.
The planned offering would make up to 200 million Class A shares available. Shareholders of record on Oct. 2, 2026 would receive one subscription right for each share owned. The subscription period is scheduled to run from Oct. 5 through Nov. 12, with a price set at the greater of $2.00 per share or 85% of the specified 10-trading-day volume-weighted average price, according to Investing.com.
That structure matters for common shareholders because preferred equity, warrants and any new Class A shares issued in the rights offering can affect their ownership and claims on the company. The company has not completed the planned rights offering, and the evidence does not establish a final dilution outcome.
UWM said it suspended the quarterly common dividend to prioritize debt reduction and balance-sheet strength. A dividend is a board-approved payment to shareholders, and a suspension means no regular common payout will be made while the policy remains in place. Learn more about how dividends work.
The company ended June with $985.3 million in total equity, down from $1.60 billion three months earlier and $1.75 billion a year earlier. It reported about $1.3 billion of available liquidity, including $498.4 million in cash and available borrowing capacity. UWM also listed $6.04 billion of non-funding debt and a non-funding debt-to-equity ratio of 6.13, which it labels a non-GAAP measure.
Chief Executive Mat Ishbia said the actions would make UWM stronger and more liquid. Oaktree will receive one board representative and the right to nominate an additional independent director, HousingWire reported.
This story draws on original reporting from CNBC.
